How to Reconcile Bank Transactions in Navigator

Bank reconciliation allows you to match transactions recorded in Navigator against your bank statement, ensuring your Cashbook accurately reflects the money entering and leaving your bank account.

This guide explains how to reconcile a day's banking transactions and check that everything balances.

1. Open Cashbook Reconciliation

1. Navigate to Accounts > Cashbook Reconciliation.

2. Select the relevant bank account.

3. Enter the date or period you wish to reconcile.

Important: You should only reconcile a completed day's banking. If you attempt to reconcile the current day, the closing balance may change as further transactions are processed.

2. Enter the Closing Bank Balance

Before reconciling, obtain your bank statement for the relevant day.

1. Find the Closing Balance shown on your bank statement.

2. Enter this amount into the Closing Balance field in Navigator.

3. Check that the amount and date are correct.

The closing balance for one day should be the same as the opening balance for the following day.

Example: If your bank statement shows a closing balance of £15,250.00 on 21 October, this is the figure you should enter when reconciling 21 October.

3. Match Your Banking Transactions

Once the closing balance has been entered, compare the transactions in Navigator against your bank statement.

1. Review the first transaction on your bank statement.

2. Locate the corresponding transaction in Navigator.

3. Check that the amount and transaction details match.

4. Double-click the transaction in Navigator to reconcile it.

5. Repeat this process for each transaction appearing on your bank statement.

This is effectively a ticking exercise, confirming that each payment or receipt has been correctly recorded.

4. Check for Missing Transactions

If a transaction appears on your bank statement but cannot be found in Navigator, it will need to be investigated.

For example, a supplier payment may have been made through the bank but not yet recorded against the relevant Purchase Ledger account.

Check the appropriate area of Navigator to establish whether the transaction needs to be posted or allocated.

Do not reconcile an unrelated transaction simply to make the balances agree.

5. Confirm the Reconciliation Balances

As you reconcile transactions, Navigator updates the outstanding balance.

Your aim is to ensure that the outstanding difference is £0.00.

If a difference remains, review the transactions you have reconciled and check whether any payments or receipts are missing, duplicated or incorrectly recorded.

Once the outstanding difference is zero, complete the reconciliation using the available option in Navigator.

Important Points to Remember

• Always use the closing balance from your bank statement for the completed day.

• Match each transaction carefully before reconciling it.

• Double-click the corresponding transaction in Navigator to mark it as reconciled.

• Investigate transactions that appear on your statement but are missing from Navigator.

• Ensure the outstanding difference is £0.00 before completing the reconciliation.

Summary

Bank reconciliation is a straightforward process of comparing your bank statement against the transactions recorded in Navigator.

By entering the correct closing balance and reconciling each matching transaction, you can ensure your Cashbook accurately reflects your bank account.

If you are unable to identify the cause of an outstanding difference, contact the Navigator Helpdesk for assistance.